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US Stocks Edge Higher in Midday Trading

Tuesday, August 9, 2016 at 2:07 pm | ה' אב תשע"ו

(AP Photo/Mark Lennihan, File)

(AP) - Gains in health care, technology and consumer-focused companies helped nudge U.S. stock indexes higher in midday trading Tuesday. Energy stocks lagged as an early rally in oil prices evaporated. Investors were poring over the latest batch of company earnings from retailers and other companies.

THE QUOTE: With nearly 90 percent of S&P 500 companies already reporting, earnings this quarter have been okay, while revenue growth has not been as bad as expected, said Bob Doll, chief equity strategist at Nuveen Asset Management.

“We’re slowly turning the corner and exiting (the) earnings recession,” Doll said. “The worst quarter, year-over-year, was the first quarter. While the second quarter wasn’t great, it was less bad. The third and fourth quarters will continue that.”

BACK IN BLACK: Endo International vaulted 22.2 percent a day after the medical device maker reported that it returned to profit in the second quarter. The Dublin-based company’s shares gained $4.03 to $22.22.

ON THE MEND: Valeant Pharmaceuticals surged 18.4 percent after the Canadian drugmaker stuck by its earnings outlook from earlier this year, despite reporting a wider second-quarter loss. The company also said it is undergoing a restructuring. The stock added $4.14 to $26.59.

RETAIL THERAPY: Retailers were among the biggest laggards. Gap sank 6.1 percent after reporting lower sales in the second quarter and in July. The stock dropped $1.57 to $24.05. Kohl’s also fell, shedding $1.28, or 3.3 percent, to $38.09. Target slid $2.43, or 3.2 percent, to $72.57.

ROUGH SEAS: Shares in two of the biggest cruise line operators were down. Royal Caribbean Cruises slid $4, or 5.4 percent, to $69.98, while Carnival lost $1.01, or 2.2 percent, to $45.48.

ENERGY: U.S. crude oil prices were headed lower after an early rally following OPEC’s announcement that oil ministers of the 14-nation cartel will meet next month, well ahead of their previously scheduled November meeting. It is unusual for OPEC to gather outside of its regularly set meetings.

Benchmark U.S. crude was down 20 cents, or 0.5 percent, to $42.80 per barrel in New York. Brent crude, used to price international oils, was down 28 cents, or 0.6 percent, to $45.11 per barrel in London.

STIMULUS SPECULATION: A measure of consumer price growth in China declined in July for the third month in a row and came in below the government’s inflation target. The data, which followed a drop in Chinese exports last month, fueled investors’ expectations that Beijing will implement more stimulus measures in a bid to soften the economy’s slowdown.

BONDS AND CURRENCIES: Bond prices rose. The yield on the 10-year Treasury note fell to 1.56 percent from 1.59 late Monday. In currency markets, the dollar fell to 101.92 yen from 102.47 yen on Monday, while the euro strengthened to $1.1112 from $1.1083.